Hong Kong Stock Market Closing (09.10) | Hang Seng Index rose by 0.22%, Stock Connect "new stars" performed well, while WuXi AppTec plummeted by 10%

According to the Wise Finance app, the Hong Kong stock market opened slightly higher in the morning but then fell, before rising and expanding its gains in the afternoon. By the close, the Hang Seng Index rose by 0.22% or 37.13 points to 17,234.09 points, with a total daily turnover of HKD 107.394 billion; the Hang Seng China Enterprises Index rose by 0.39% to 6,026.34 points; and the Hang Seng Tech Index rose by 0.41% to 3,450.73 points.

A research report from CICC pointed out that overall, the short-term uncertainty in the domestic and international environment may continue to bring volatility, and it still believes that the resilience of the Hong Kong stock market is greater than that of the A-share market. In terms of allocation, the growth sectors benefiting from interest rate cuts may have higher resilience in the short term, but in the medium term, the structural market with range-bound fluctuations remains the main theme, corresponding to dividends + technology growth.

Performance of Blue Chip Stocks

Newly listed stock Alibaba-W (09988) in the Hong Kong Stock Connect rose throughout the day. By the close, it was up by 4.21% to HKD 81.6, with a turnover of HKD 16.854 billion, contributing 60 points to the Hang Seng Index. Morgan Stanley pointed out that Alibaba was included in the Hong Kong Stock Connect today (10th), in line with expectations. It is estimated that in the next year, it will attract a net inflow of USD 17 billion to USD 37 billion in southbound funds, with a shareholding ratio ranging from 8% to 17%, and there are many short-term catalysts for Alibaba's stock price recently.

In other blue-chip stocks, Li Auto-W (02015) rose by 6.33% to HKD 76.45, contributing 10.12 points to the Hang Seng Index; Chow Tai Fook (01929) rose by 4.03% to HKD 6.19, contributing 0.76 points to the Hang Seng Index; WuXi AppTec (02359) fell by 10.43% to HKD 32.2, dragging down the Hang Seng Index by 2.15 points; Xinyi Solar (00968) fell by 4.42% to HKD 2.81, dragging down the Hang Seng Index by 0.99 points.

Hot Sectors

On the market, large-cap tech stocks saw mixed movements, with Alibaba officially included in the Hong Kong Stock Connect and rising by over 4%; Baidu and JD.com both rose by over 1%; Tencent fell by 0.7%. The U.S. House of Representatives passed the "Biological Security Act," with CRO concept stocks leading the decline; several property stocks plummeted after being removed from the Hong Kong Stock Connect; semiconductor stocks, photovoltaic stocks, cement stocks, and Apple concept stocks all declined. On the other hand, new energy vehicle sales in August increased by 30% year-on-year, leading to a rebound in some new energy vehicle stocks; the performance of "new stars" in the Hong Kong Stock Connect was impressive, with Crystal International Group-P surging by 22% and Lao Feng Xiang Gold closing up by over 12%.

1. CRO concept stocks led the decline. By the close, WuXi AppTec (02359) fell by 10.43% to HKD 32.2; Tigermed (03347) fell by 5.12% to HKD 25.95; Kanglong Chemical (03759) fell by 3.24% to HKD 8.97.

On September 9th, the U.S. House of Representatives announced the passage of H.R.8333, the "Biological Security Act," with 306 votes in favor and 81 votes against. The bill, citing "national security," restricts the U.S. federal government from conducting business with certain biotechnology providers. It is reported that five Chinese companies, including WuXi AppTec, are involved in this bill. WuXi AppTec released a statement this morning reiterating that the company does not have human genomics business and its existing businesses do not involve collecting human genomic data in the U.S., China, or any other region 2. Real estate stocks fell again. As of the close, Shimao Group (00813) fell by 22.5% to HKD 0.465; Oceanwide Holdings (03377) fell by 15.86% to HKD 0.191; Agile Group (03383) fell by 13.75% to HKD 0.345.

On the evening of September 9th, the Shanghai and Shenzhen Stock Exchanges issued a notice that adjustments to the constituents of the Hang Seng Composite LargeCap Index, MidCap Index, and SmallCap Index were implemented, resulting in adjustments to the list of stocks eligible for the Stock Connect program, effective from September 10th. Several real estate stocks including Country Garden, Shimao Group, Oceanwide Holdings, Agile Group, and China South City were removed. Guosen Securities believes that since August, new home sales have continued to deteriorate, with no signs of stabilization in the second-hand housing market. As the last selling window of the year, the possibility of a repeat of the first quarter's price-for-volume strategy during the "Golden September and Silver October" period exists.

3. Some new energy vehicle stocks rebounded. At the close, Nio-SW (09866) rose by 9.86% to HKD 42.35; Li Auto-W (02015) rose by 6.33% to HKD 76.45; XPeng-W (09868) rose by 2.01% to HKD 33.05.

Data from the China Association of Automobile Manufacturers shows that in August, China's production and sales of new energy vehicles reached 1.092 million and 1.1 million units respectively, representing year-on-year growth of 29.6% and 30%. New energy vehicles accounted for 44.8% of total new car sales. From January to August, China's production and sales of new energy vehicles reached 7.008 million and 7.037 million units respectively, with year-on-year growth of 29% and 30.9%. A report from Kaiyuan Securities indicates that looking ahead, policies promoting trade-ins for new cars, stabilization of price reductions, the upcoming peak consumption season, accelerated overseas production capacity expansion by car companies, and continuous advancement in intelligent technology are expected to support demand.

4. Outstanding performance of "new stars" in the Stock Connect program. At the close, Crystal International Group (02228) rose by 22.26% to HKD 15.6; Lao Feng Xiang (06181) rose by 12.02% to HKD 103; Powerlong Development (01277) rose by 8.18% to HKD 1.19; Sinopec Engineering (02386) rose by 6.91% to HKD 5.26; Zhitong Auto Technology (01274) rose by 4.37% to HKD 28.65; SF Real Estate (09699) rose by 5.45% to HKD 11.6.

On the other hand, stocks removed from the Stock Connect program experienced sharp declines. At the close, Meinian Health (02415) fell by 31.3% to HKD 0.79; Jushengtai Medicine-B (02511) fell by 20.63% to HKD 1; Dingdang Health (09886) fell by 19.49% to HKD 0.475. Sunac China Holdings (02459) was excluded from the Stock Connect program due to high concentration of equity ownership, and its stock price continued to decline by 24.17% to HKD 0.455 today.

Hot Stocks in Focus

1. Nio-SW (09866) continues its upward trend. At the close, it rose by 9.86% to HKD 42.35. CICC International stated that Nio's second-quarter revenue was RMB 17.5 billion, up 98.9% year-on-year and 76.1% quarter-on-quarter. The gross profit margin for automobiles was 12.2%, higher than the bank's expected 10% to 11%. With improving sales volume and narrowing promotions, the bank believes that Nio has reached a turning point, and the gross profit margin for automobiles in the third quarter will further improve.

2. Guotai Junan International (01788) resumed trading and rose. As of the close, it rose by 6.56% to HKD 0.65 .

Guotai Junan International announced that the board of directors learned from a suspension announcement issued by its controlling shareholder, Guotai Junan Securities, on September 5, that Guotai Junan Securities and Haitong Securities have signed a legally binding cooperation agreement to implement a proposed merger through absorption and share exchange.

3. Chow Tai Fook (01929) rebounded in stock price, rising by 4.03% to HKD 6.19 at the close .

Chow Tai Fook's new concept store on Queen's Road Central in Central officially opened today, covering an area of approximately 2,880 square feet. Chen Yibang, Chief Brand Officer of Chow Tai Fook Jewellery Group, stated that Chow Tai Fook Jewellery plans to expand into the Southeast Asian market. Due to the group's over 7,500 stores in Mainland China and Hong Kong, the brand transformation is expected to take 5 years for all stores to appear in the new image.

4. Sands China (01928) rose in the afternoon. As of the close, it rose by 3.43% to HKD 13.88 .

Sands China announced that its controlling shareholder, Las Vegas Sands, plans to further increase its stake in the company. LVS's indirect wholly-owned subsidiary, Venetian Venture Development Intermediate II (VVDI (II)), entered into a share purchase agreement with a financial institution on Monday (9th) Las Vegas time to purchase company shares for up to HKD 800 million